In a letter addressed to Finance Minister Senator Shaukat Tarin, the UAE government has confirmed delivery of sugar within 14 days of opening of Letter of Credit (L/C) and have readily agreed to supply white sugar as per PSQCA regulations and would comply with the standards in Pakistan.
"This seems to be a golden opportunity for the GoP to overcome the sugar crisis as Pakistan has to import 1.4 million tonnes of sugar this year to meet domestic demand," commented one of the officials of Finance Ministry on condition of anonymity.
Prices in the local market have already touched Rs 72 per kilogram and the country would be facing a horrific situation in the coming months if timely imports are not done. The federal government is calling meetings on sugar relentlessly and making no decisions. The price of sugar has gone up to almost $760 per ton.
When the Finance Minister met the TCP Chairman in November 2009 and decided the import of white sugar, prices were far less than the current level. Analysts are of the view that the federal government seems busy in fighting for inferior standards of sugar to save $5-7 per ton while the price has escalated $130 per tone since November and over $375 per ton since April 2009 when Minfa had pointed the urgency to import one million tons of refined sugar.
"They want to defy the PSQCA and is calling for ad hoc changes for which the ECC will hold a special session," the sources added. The sources said, UAE government has proposed to send a team to finalise all arrangements with the GoP at the earliest.
Business Recorder has learnt that an informal letter has been received on December 10, 2010 from Philippines addressed to the Commerce Minister for a barter trade with rice; however no progress has been made till now. It is also learnt that Philippines total sugar production is 2.3 million tons per year while they are only allowed to export 2 percent as per the law.